Hiring car insurance is not always an easy task. As the investment directly impacts the driver’s pocket, knowing how to choose carefully and look for more affordable alternatives to contract an auto insurance coverage is fundamental.
One of the strategies to get a better price and save on insurance is to start evaluating some factors that insurance companies take into consideration when making a quote: age of the driver, type of vehicle, tracking option, in short.
These are just a few issues that reflect on the price of insurance and that ultimately impact the driver’s pocket.
Do you know what are the points that help to decrease (or increase) the value of your auto insurance?
See, in this post, what are the factors that can influence the price of car insurance and how it is possible to get a better price with them. Check it out!
6 factors that influence the price of car insurance
Getting a better price on insurance is practically a challenge. After all, there are “n” factors that can influence a quote. However, it is possible to reduce the amount paid if the driver knows a little more about his profile and his condition.
1. Driver’s age affects the price of car insurance
One of the factors that weighs the most in a car insurance quote is the driver’s age. As younger drivers are considered inexperienced in traffic, the price charged ends up being higher for those aged between 18 and 25.
In addition, another factor that may be taken into consideration by insurers is the age of the people who live together with the driver.
So, if the owner of the vehicle has a 23-year-old child, and this is listed as one of the drivers, the price of the auto insurance will continue to be more expensive.
Another issue that influences the price of car insurance is the driver having (or not) a suitable place to leave his vehicle.
Cars that are usually left on the streets are more likely to be stolen, damaged or even stolen. Therefore, the insurance companies end up charging a higher price for that.
However, if the driver has a garage to leave his vehicle, the insurance value will become cheaper and accessible. Consequently, helping you to save money.
Tip: In case you do not have your own garage, check the possibility of accommodating your car in a rented garage. This way you will be able to guarantee a lower price when hiring the insurance.
3. Vehicle tracker
The vehicle tracker is a geolocation equipment that works through GPS (Global Positioning System). It serves to help drivers monitor and locate their vehicles from anywhere, anytime. By offering more security, it enables the owner to save on insurance.
Cars that have this type of device installed may end up paying cheaper insurance than others. This is because the probability of the vehicle being located is higher in cases of theft or robbery.
When the driver does not invest in this type of technology, the insurance company deduces that, if a theft occurs, for example, the vehicle has lower chances of being located.
Note: Guaranteeing an insurance discount may depend on the insurance company and type of insurance. For more information contact your broker.
4. The type of car
When it comes time to buy a car, most drivers conduct a search for prices and payment terms.
There are cars for all kinds of pocketbooks, right? So, if we take into consideration each of the vehicles, it is assumed that the value of car insurance will also be influenced.
So, if the car is cheap (between 15,000 and 40,000, for example), the price of car insurance will not be that high.
On the other hand, the higher the value of the car (between 90 thousand and 150 thousand), it is likely that the amount charged by the insurer is higher.
It is worth remembering that, in many cases, the IERF(Institute of Economic Research Foundation) is used as reference.
5. Place where the driver lives
It is common to find regions with higher rates of robbery and theft. In capital cities and large urban centres, these numbers tend to be more significant than in smaller cities with fewer inhabitants.
Therefore, the location where the driver lives ends up being a factor that also influences the price of the insurance.
If the driver lives in a metropolitan region, in a district considered dangerous, consequently the price of auto insurance will be more expensive. However, if you live in a smaller city or in a more protected neighborhood, the price of insurance tends to decrease.
6. Use of the vehicle
6. Use of the vehicle In addition to the driver’s age, the garage to store the car, having a tracking device installed, knowing what type of vehicle and where the driver lives, another factor that will have an influence on the price of car insurance is the regularity with which the car is used.
Users who use the vehicle sporadically or only as a daily commute, end up paying cheaper for insurance than drivers who use the car for work purposes.
This difference in price occurs because cars that are on the road for a longer period of time end up being more subject to claims such as theft, accidents or robbery.
So, a tip to get a better price is to choose other means of transport besides the car. Bikes, buses and even Uber services can be an interesting alternative to save money.
Defining a lower price for insurance may seem like a difficult task. Even more so when there are so many factors that are taken into consideration when making a quote.
However, remember that you can always evaluate the payment conditions or talk to specialized professionals to help you.
How to get a better price on your car insurance
The tip is, in case one of the factors influences a higher price, check if the other points cannot help to lower the price. For example: You own a car, you are 24 years old and you use the car regularly, OK?
Although these conditions weigh on the value of your auto insurance, you know that you live in a not very busy neighborhood, have a popular car and have a tracker installed in the vehicle.
That is, just better evaluate your profile and situation to reach a fairer and affordable price.
Did you like the theme? Do you already know how to get a better price for insurance or are there still questions? In case you need support or don’t know which is the right coverage for your vehicle, click and find out how Onlyscholarship can help you.